Mahindra & Mahindra Financial Services (M&MFIN) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw improved momentum in the wheels business, especially tractors, aided by GST changes and festive demand, with expectations of continued growth into H2.

• Achieved 3% year-over-year growth in Q2FY26 disbursements, reaching ₹13,514 crore, and AUM rose 13% YoY to ₹1,27,246 crore.

• Net profit after tax increased 54% YoY to ₹569 crore for Q2FY26, with PAT for H1 reaching INR 1,100 crore.

• Asset quality remained stable with GS2+GS3 at 9.7%, Gross Stage 3 at 3.9%, and credit cost guidance maintained at 1.7% for the full year.

• Capital adequacy remains strong at 19.5%, with Tier I at 16.9%.

Financial highlights

• AUM grew 13% and income grew 14% year-over-year; NIM expanded from 6.5% to 7%.

• Total income for Q2FY26 grew 14% YoY to ₹4,489 crore; standalone revenue from operations for Q2 FY2026: ₹4,472.67 crore.

• Pre-provisioning operating profit (PPOP) increased 25% YoY to ₹1,499 crore.

• PAT for H1 increased 25% YoY, reaching INR 1,100 crore.

• Cost-to-income ratio for H1FY26 stood at 41.7%; ROA for H1FY26 was 1.6%, and RONW was 10.3%.

Outlook and guidance

• Management expects continued momentum in H2, especially in passenger vehicles and tractors, driven by GST benefits and festive demand.

• Focus on defending and growing leadership in vehicle financing, expanding SME, leasing, and fee income streams.

• Continued emphasis on asset quality, risk management, and efficiency gains through digital and AI initiatives.

• Disbursement growth is targeted at a minimum 15% CAGR in the medium term.

• Targeting stronger RoA and RoE outcomes and turnaround in affordable housing segment.